LatAm credits drift higher in well-bid market

lunes 13 de abril de 2015 17:30 GYT

By Davide Scigliuzzo

NEW YORK, April 13 (IFR) - Latin American credits were ending the day mixed but largely well bid, as the region's debt prices drifted higher alongside oil and US Treasury markets.

In the corporate space, Brazilian miner Vale was among the underperformers, with the company's bonds widening by as much as 10bp after S&P said it might downgrade the credit and other global miners over the next two to three weeks.

Bonds issued by Brazilian state-run oil company Petrobras were ending the session unchanged as investors took a breather after last week's strong rally and looked to lock in profits.

This comes amid a local report that Petrobras is planning to sell a stake in petrochemicals firm Braskem for about BRL2.8bn as part of a broader asset sale strategy. The news did little to move Braskem's bonds, which were closing unchanged, albeit after a day of good two-way flows.

Power utility Eletrobras, meanwhile, saw its curve inch higher by as much as a point, catching up with earlier gains made by Petrobras after the spread differential between the two state-controlled companies had reached recent wides.

Eletrobras's 2019s, for example, were ending the session at 100, up from around 93 less than two weeks ago.

Some notes in the high-yield space were also better bid, with construction company Odebrecht's bonds closing about a point higher, with 2025s and 2042s quoted at 87-88 and 88.0-88.5 respectively.

Prices on the 2022 drillship bond issued by Schahin, meanwhile, appeared to have stabilized after posting heavy losses at the beginning of last week, and were ending the session at around 46 mid-market.   Continuación...